Volkswagen to invest $580 million in Argentina as part of its global strategy to strengthen its presence in key regional markets. The funding will support the development and production of a new generation of midsize pick-up trucks to be introduced as the successor to the Amarok. Production of the new model is set to begin at Volkswagen’s Pacheco plant in 2027.
Tailored specifically for the South American market, the new Amarok is expected to enhance the brand’s position in the strategically vital pick-up segment. The investment is part of Volkswagen’s long-term plan to become the global technology leader among volume manufacturers by 2030, with a strong focus on regional growth and market-specific innovations.
Speaking on April 3, 2025, Thomas Schäfer, CEO of the Volkswagen brand and Head of the Brand Group Core, highlighted the importance of localization. “This investment strengthens our position in a region that is strategically important for the Volkswagen brand. The new Amarok will be developed, designed, and produced in South America, for South America,” he stated.
Volkswagen confirmed that its existing Amarok production partnership in South Africa will continue, ensuring global market supply, while the South American strategy focuses on localization and tailored product solutions.
Alexander Seitz, CEO of Volkswagen Latin America, expressed confidence in Argentina’s industrial potential, stating that the new Amarok will deliver enhanced performance, innovation, and sustainability. Marcellus Puig, President and CEO of Volkswagen Argentina, added that the model would blend 15 years of Amarok legacy with new technology to deliver a competitive offering for the region.
The Pacheco facility, which has produced over 770,000 Amaroks to date, will undergo major upgrades as part of the investment. Volkswagen plans to introduce new production technologies, enhance digital processes, and increase energy efficiency to meet the demands of the next model generation.
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